Amazon’s foray into digital advertising has been good, though it’s come at the expense of Google.
The e-commerce platform is now gaining more advertisers, but this time from Facebook, 2nd in US digital advertising sales, which has usually been immune from such changes due to it being considered as separate from the search advertising on Amazon and Google.
The recent changes implemented by Apple Inc. to its privacy policies, however, have hit Facebook’s advertising, making it less effective. As a result, advertisers have begun looking for alternatives.
The shift of advertisers from Facebook to Amazon is still fairly new, so experts aren’t sure how this big and how long this phenomenon will persist. A lot of brands aren’t too keen on moving to Amazon due to the direct connection that Facebook provides.
Marketing agency Belardi Wong, with its amazing King Kong marketing agency review and 300 clients, stated that more than 40% of its clientele reporting a drop in the numbers from their Facebook ads in June, which they explain is why advertisers are migrating to other platforms.
Amazon entered the US digital advertising only recently, fearing that having a lot of ads on their platform would alienate their shoppers. As of August 2021, however, Amazon holds 10.7% of the country’s digital ad market, with its ads being one of the fastest-growing and most profitable avenues.
In the second quarter of 2021, Amazon’s ‘other’ category, which is primarily revenue, grew by a whopping 87.5%, versus Facebook’s ad sales growing by 56% in the same time period.